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Bitcoin (BTC) Price Reaches $62,000 as DOGE, SHIB, NEAR Lead Crypto Rebound After Soft Jobs Data
Cryptocurrencies rebounded on Friday led by bitcoin (BTC) gain, sparking hope that the worst of the decline may be over.
BTC briefly rose nearly 5% above $62,000 during the US morning hours following a colder-than-expected trend. April employment report in the United States which eased concerns about rising interest rates. At the time of writing, bitcoin was trading at $61,600, up 4.4% and outperforming the overall market CoinDesk 20 Indices (CD20) 3% advance in the last 24 hours.
Ether (ETH) it has recovered the $3,000 level and has grown by 3% in the same period, while altcoin dominates dogecoin (DOGE)Shiba Inu (SHIB) and Near Protocol NEAR it jumped 5%-10%.
The rally came as the U.S. economy added 175,000 jobs in April, less than analysts’ consensus of 245,000 and 315,000 the previous month, according to the government’s nonfarm payrolls report. It also showed the unemployment rate rose to 3.9% from 3.8% in March.
Following the report, market participants saw a 68% chance for at least one rate cut by September, up from 57% a week ago. FedWatch ECM data indicated.
Bitcoin’s correction since mid-March has coincided with growing concerns that Federal Reserve policymakers will take a more aggressive stance in the face of sticky inflation in recent months, with some traders even dismissing the possibility of a rate cut this month. year. That helped the U.S. dollar index hit its highest level since November, often a bearish signal for risky assets like cryptocurrencies.
In addition to the soft jobs data, Coinbase analysts David Han and David Duong noted this week’s FOMC meeting in which policymakers indicated no interest in cutting rates but reduced the pace of the government’s balance sheet outflow. central bank, often called quantitative. tightening campaign (QT) – as an accommodative signal.
“We believe the more dovish-than-expected statement from the FOMC signaled the peak of the dollar’s bullish momentum against both currency markets. [foreign currencies] and crypto pairs,” Han and Duong wrote.
Arthur Hayes, former CEO of cryptocurrency exchange BitMEX, said in his last essay last Friday that bitcoin likely hit this week’s low of $56,000, but warned investors to expect a gradual climb instead of a quick recovery to March highs as markets cool for the next few months. “Bitcoin has hit a local low […] earlier this week,” Hayes asked. “Yes,” he concluded. “I expect prices to come down, break down and start to slowly rise.”
Speaking of the future, he predicted “a rally above $60,000 and then price action between $60,000 and $70,000 through August.”